Join Eddie Davila for an in-depth discussion in this video Knowing your market, part of Business Foundations.
- Whether your company has customers, wants customers, or if your already-successful company wants even more customers, knowing that customer is vital to securing sales. So as a company looks to start selling their products and services, often one of the very key questions they need to confront early in the process is who should my company want as customers? Who is our target market? Well your target market should probably include people that you're capable of satisfying while still earning a profit.
That way they're happy and you're happy. So how do companies describe their target markets? Well target markets can be described in a number of different ways. Is your target market made up of men or women? How old are they? Where do they live? What language do they speak? What are their hobbies? What do they do for a living? How much money do they make? Or better yet, how much money do they spend? And is it possible your target market is not made up of people? Perhaps your target market is made up of other companies.
And it doesn't matter where your company is today. If you're a brand new startup company, a large global firm with a rich history, or maybe your future company is only an idea in your head. Knowing your market is important to being successful today and in the future. Why? Well a company and its marketing team and sales force have only so much time and money. They need to use their resources wisely. So for a chain of stores that sells stylish clothing for kids, knowing that their target market is predominantly made up of women 25-40 in the northeast part of the United States that are married with children between the ages of 4-10 years old, in homes where these women are the primary shoppers, and they have annual clothing budgets between $750 - $2,000 per child, that might be important to know.
It tells us where to put our stores, how to decorate our stores, what kind of customer service employees we need to hire, and perhaps what type of in-store events should be planned. It also informs us on where to send catalogs and advertisements, and what our website should look like. Knowing our customer, their preferences and where they're located, gives us a better chance of making a connection, which will hopefully result in sales. Plus, looking to the future, knowing our target market can inform us on the designs, styles, and materials these potential customers may favor.
We're not just making sales today. We're building a target market that is loyal to our brand. So whether you want to know your customer's desires today or tomorrow, whether you want to use your company's money and time wisely, or if you just want to find new customers for your products and services, understanding your target market is vital to the evolution of your company.
He also reviews the basics of the people side of business: managing employees and developing customer relationships. Last, he covers the financial and information management aspects of business and provides a basic explanation of economics, so that you can understand the relationship of your business to the bigger picture.
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- Understanding business goals, stakeholders, and resources
- Developing a product or service
- Selling a product or service
- Raising capital
- Managing employees
- Managing customer data
- Understanding finances
- Managing resources
- Understanding economics